HSBC plans contingent buffered enhanced notes tied to seven stocks

By Marisa Wong

Madison, Wis., July 5 - HSBC USA Inc. plans to price 0% contingent buffered enhanced notes due July 24, 2013 linked to a basket of seven stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of ConocoPhillips, Exxon Mobile Corp., Cenovus Energy Inc., Occidental Petroleum Corp., Royal Dutch Shell plc, Total SA and BP plc.

If the final basket level is at least 80% of the initial basket level, the payout at maturity will be par plus the basket return, subject to a minimum return of 2% and a maximum return of 20%.

If the final basket level is less than 80% of the initial basket level, investors will be fully exposed to the basket's decline from the initial level.

The notes (Cusip: 4042K1X99) will price on July 6 and settle on July 11.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as placement agent.

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